This article first appeared on GuruFocus .
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Revenue:CHF673 million in Q1, with organic growth of 7.1%.
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EMEA Organic Growth:7.8%.
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North America Growth:7.7%.
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Asia Pacific Growth:Stabilized at 0.5%.
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Latin America Growth:19.5%.
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Foreign Exchange Impact:Negative impact of CHF53 million, mainly due to US dollar and euro depreciation.
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Core EBIT Margin Improvement Outlook:Expected improvement of 30 to 60 basis points at constant 2025 exchange rate.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Straumann Holding AG ( SAUHF ) reported a strong start to 2026 with a revenue of CHF673 million, reflecting an organic growth of 7.1%.
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The company gained market share across key segments, driven by its innovation pipeline, digital offerings, and strong customer engagement through education.
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North America showed consistent growth with a 7.7% increase, supported by strong commercial execution and strategic customer partnerships.
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Latin America delivered outstanding performance with organic growth of 19.5%, driven by strong demand for challenger implants and digital solutions.
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The transition to Smartee manufacturing in EMEA and Asia Pacific was successfully completed, enhancing the company's value proposition in Orthodontics.
Negative Points
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The reported revenue in Swiss francs declined by 1.2% due to a negative foreign exchange impact of CHF53 million, primarily driven by the depreciation of the US dollar and euro.
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Market conditions in China remain challenging due to the delayed volume-based procurement process, resulting in a stabilized regional development of only 0.5%.
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The geopolitical environment and macroeconomic uncertainties continue to pose risks, potentially impacting market conditions and business performance.
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The company faces ongoing foreign exchange volatility, which could affect financial performance if currencies do not stabilize.
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Despite strong performance, the company anticipates continued volatility in market conditions, which could impact its ability to achieve high single-digit organic revenue growth.
Q & A Highlights
Q: Can you expand on the strength in North America and any changes in demand or consumer sentiment? Also, how are inflation dynamics affecting your costs? A: Guillaume Daniellot, CEO: The improved dynamics in North America are primarily due to strong execution and innovation, not market tailwinds. We see stable patient flow and growth across all business segments, including iEXCEL innovation and digital solutions. Inflation hasn't significantly impacted demand, but interest rates could affect it. We've taken measures to mitigate potential cost increases from geopolitical tensions, though energy costs are a small part of our total expenses.
Q: Is there any update on the timing of VBP in China, and how do you see the trajectory of that business? Also, what are the headwinds and tailwinds for margins in 2026? A: Guillaume Daniellot, CEO: There is no official update on VBP timing, possibly in the second half of the year. Patient flow is normalizing, and distributors are restocking. We expect low single-digit to flat growth in Q2 and better growth in the second half. Isabelle Adelt, CFO: The main margin drivers remain unchanged, with positive developments in Orthodontics transformation and local manufacturing in China. External factors like FX volatility and tariffs are monitored, but internal improvements are promising.
Q: How much of the growth in Latin America is due to pricing, and what are the potential cost inflation issues? A: Guillaume Daniellot, CEO: Growth in Latin America is mainly volume-driven, with strong implant development across the region. We have subsidiaries in many markets, allowing for significant traction. Isabelle Adelt, CFO: Cost inflation is under control, with low exposure to energy costs and secured pricing with suppliers. We expect to mitigate any increases with savings measures.
Q: Can you discuss the impact of demand pull-forward in EMEA and the potential for double-digit growth in Q2? Also, clarify the margin outlook for H1 and H2. A: Guillaume Daniellot, CEO: EMEA shows strong resilience due to our presence in Western and Eastern Europe and investments in market share. We expect high single-digit to low double-digit growth. Isabelle Adelt, CFO: The first half will be better than expected due to lower tariffs and VBP timing, but overall margin progression remains in line with guidance.
Q: How do you see the phasing of demand in China if VBP is implemented in late 2026 or early 2027? A: Guillaume Daniellot, CEO: We don't expect a significant air pocket in demand if VBP is delayed. Patient flow is normalizing, and we anticipate growth in the second half due to a low comparison base. Whether VBP occurs or not, we expect growth in China.
Q: How much of your premium customer base has converted to iEXCEL, and are you seeing increased competition from Korean implant companies in Europe? A: Guillaume Daniellot, CEO: iEXCEL now represents over 20% of our premium implant volume, and we plan to build on this success. We haven't seen increased competition from Korean companies in Europe beyond what we already experience.
Q: Have you made enough investment in sales and marketing for ClearCorrect, and are you on track to reduce losses by half? Also, comment on the competitive landscape in China regarding zirconium and titanium implants. A: Guillaume Daniellot, CEO: We have invested significantly in ClearCorrect's value proposition and have the market reach to drive growth without additional sales investment. We are on track to reduce losses as planned. In China, local competitors are developing technology, but we maintain differentiation through education and product quality.
Q: Can you provide an updated view on FX impact on margin for the full year? A: Isabelle Adelt, CFO: The FX impact was significant in Q1, but we expect a turnaround in Q2. The overall FX impact for the year will be slightly below last year's levels, with a margin impact of roughly 100 to 120 basis points.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
